Tokyu Fudosan Holdings Corp. · TSE:3289
Tokyu Fudosan — Q1 FY2019 Earnings Presentation
40 slides from Tokyu Fudosan's earnings presentation, August 2019
Slide 1: Financial Highlights FY2019 First Quarter
Financial Highlights FY2019 First Quarter (First Three Months) Ended June 30, 2019 TOKYU FUDOSAN HOLDINGS CORPORATION Code：3289
Slide 2: Forward-looking statements
The forecasts and other forward-looking statements in this report are based on currently available information and certain assumptions determined as rational. Consequently, any statements herein do not constitute assurances regarding actual results by the Company. Actual performance may significantl
Slide 3: FY2019 Q1 Operating Results
FY2019 Q1 (First Three Months) Operating Results Respective businesses remained firm, although profit decreased mainly due to a decline in sales by bulk in the Residential segment. Q1 First Three Months Full-year (ended Jun-30) (ended Mar-31) Compared to the same period （\ billion） Progress last yea
Slide 4: FY2019 Q1 Segment performance
FY2019 Q1 (First Three Months) Segment performance Progress was basically made in line with the full-year forecast, although the rate of progress was low in a number of segments. Q1 First Three Months Full-year (ended Jun-30) (ended Mar-31) Compared to the same period （\ billion） Progress FY2019 las
Slide 5: Summary of balance sheets
Summary of balance sheets Assets and liabilities increased, mainly due to an increase in Real estate for sale and Property and equipment, Intangible assets. FY2018 FY2019 （\ billion） As of Mar-31, As of Jun-30, Compared to the end of the previous fiscal year 2019 2019 Comparison Cash and deposits 18
Slide 6: Urban Development(1) FY2019 Q1
Urban Development(1) FY2019 Q1(First Three Months) Q1: Decreases in revenue and Increases in profit FY2019: Decreases in revenue and Increases in profit First Quarter FY2018 FY2019 Compared to the same period Comparison Progress First Three Months（\ billion） Q1(Apr-Jun) Q1(Apr-Jun) last year Operati
Slide 7: Urban Development(2) Vacancy Rate and Rent
Urban Development(2)Vacancy Rate and Rent As of June 30, 2019 Vacancy rate 0.2% (Tenants actually moving in and out, Office buildings and commercial facilities) (¥/Month/Tsubo) 12% ¥30,000 Tsubo ≅ 3.3㎡ 29,220 27,730 25,180 26,610 10% 26,090 ¥25,000 23,850 23,770 24,210 24,330 24,500 23,270 22,480 22
Slide 8: Urban Development(3) Major projects
Urban Development(3)Major projects Floor space ： thousand ㎡ Namba Kudanminami Motomachi Q Plaza Ikebukuro Jimbocho North Asakusa 2-chome Takeshiba District 1-chome Project ** 1-chome Place Toshima-ku Tokyu Building Hotel Project** Chiyoda-ku Chayamachi B-2 Block Development Plan ** Osaka Commercial/
Slide 9: Urban Development(4) Major projects in the Greater Shibuya area
Urban Development(4)Major projects in the Greater Shibuya area Under the Shibuya Sakuragaoka Block Redevelopment Plan, demolition started in January 2019. Shibuya 渋谷駅sta. Project led by Tokyu Land Corporation Project led by Tokyu Corporation SHIBUYA HIKARIE SHIBUYA SCRAMBLE SQUARE SHIBUYA STREAM Shi
Slide 10: Urban Development(5) Major projects Shibuya Solasta
Urban Development(5)Major projects <Shibuya Solasta> Completed in March 2019 as a smart office that uses IoT and became a new base of the Group. 〈Smart office that uses IoT〉 Visualizes the occupancy Checks the locations of level of bathrooms. workers in real time. Registers the information of Air-co
Slide 11: Urban Development(6) Major projects Takeshiba
Urban Development(6)Major projects <Takeshiba> Facilitate the conversion of Takeshiba into a smart city in cooperation with SoftBank Corporation that will use the facility as an office tenant. Takeshiba District Development Plan (Tentative name) Office/Commercial/Housing Floor space ：about 180 (Offi
Slide 12: Urban Development(7) Renewable energy business
Urban Development(7)Renewable energy business Investment in the renewable energy business, including investment in solar power and wind power generation plants, made progress. Projects acquired (As of June 30, 2019) solar power plant in operation Hokkaido solar power plant under development solar po
Slide 13: Residential(1) FY2019 Q1
Residential(1) FY2019 Q1(First Three Months) Q1: Decreases in both revenue and profit FY2019: Decrease in revenue and Increase in profit First Quarter FY2018 FY2019 Compared to the same period Comparison Progress First Three Months（\ billion） Q1(Apr-Jun) Q1(Apr-Jun) last year Operating revenue 13.1
Slide 14: Residential(2) Change in indexes for condominium sales
Residential(2)Change in the indexes for condominium sales In the fiscal year ending March 31, 2020, the number of units sold will increase, and the percentage of contracts secured has made a steady progress. FY FY2017 FY2018 FY2019 Forecast FY2020 Forecast No. of units sold Total 1,627units Total 1,
Slide 15: Property Management(1) FY2019 Q1
Property Management(1) FY2019 Q1(First Three Months) Q1: Increases in both revenue and profit FY2019: Increases in both revenue and profit First Quarter FY2018 FY2019 Compared to the same period Comparison Progress First Three Months（\ billion） Q1(Apr-Jun) Q1(Apr-Jun) last year Operating revenue 37.
Slide 16: Property Management(2) Stock of properties
Property Management(2)Stock of properties Condominiums and buildings under management steadily increased to expand stock under management. 〈Trend in stock of comprehensive condominium management and facility management in number of units〉 Comprehensive management Facility management 800,000 301,841
Slide 17: Real Estate Agents(1) FY2019 Q1
Real Estate Agents(1) FY2019 Q1(First Three Months) Q1: Increases in both revenue and profit FY2019: Increases in both revenue and profit First Quarter FY2018 FY2019 Compared to the same period Comparison Progress First Three Months（\ billion） Q1(Apr-Jun) Q1(Apr-Jun) last year Operating revenue 21.3
Slide 18: Real Estate Agents(2) Performance indicators
Real Estate Agents(2)Performance indicators in sales agency operations In the retail business, revenue increased due to an increase in the number of transactions. FY2019 Q1 Highlights Retail Wholesale Total No. of transactions 6,273 349 6,622 □Retail (Result) ・Increase in revenue due to a rise in th
Slide 19: Wellness(1) FY2019 Q1
Wellness(1) FY2019 Q1(First Three Months) Q1: Increase in revenue and Decrease in profit FY2019: Decreases in both revenue and profit First Quarter FY2018 FY2019 Compared to the same period Comparison Progress First Three Months（\ billion） Q1(Apr-Jun) Q1(Apr-Jun) last year Operating revenue 23.2 25.
Slide 20: Wellness(2) Major projects
Wellness(2)Major projects A number of hotels of Tokyu Stay, which maintains a high level of operation, are scheduled to open. New Tokyu Stay hotels Opening date ＜Number of Tokyu Stay hotels scheduled to open and their guest rooms＞ Tokyu Stay Naha FY2019 Winter Tokyu Stay Osaka Hommachi FY2019 Winter
Slide 21: Tokyu Hands FY2019 Q1
Tokyu Hands FY2019 Q1(First Three Months) Q1: Increase in revenue and Decrease in profit FY2019: Increases in both revenue and profit First Quarter FY2018 FY2019 Compared to the same period Comparison Progress First Three Months（\ billion） Q1(Apr-Jun) Q1(Apr-Jun) last year New stores+0.2, Operating
Slide 22: Innovation Business(1) FY2019 Q1
Innovation Business(1) FY2019 Q1(First Three Months) Q1: Increases in both revenue and profit FY2019: Decreases in both revenue and profit First Quarter FY2018 FY2019 Compared to the same period Comparison Progress First Three Months (\ billion) Q1(Apr-Jun) Q1(Apr-Jun) last year Operating revenue 7.
Slide 23: Innovation Business(2) Overseas operations
Innovation Business(2)Overseas operations Business expansion mainly in Indonesia and America 〈Indonesia〉 〈America〉 BRANZ BSD Puri Botanical project 425 Park Avenue Condominiums, Total number of units: Condominium, Total number of units: about 3,000 units scheduled about 600 units scheduled Completed
Slide 24: Reference
Reference 23 Copyright © TOKYU FUDOSAN HOLDINGS CORPORATION All rights reserved.
Slide 25: Progress of Medium-Term Management Plan 2017-2020
Reference① Progress of Medium-Term Management Plan 2017-2020 （The revised version was announced in May 2019） Revised the targets set in the Medium-Term Management Plan in consideration of the current business environment and the capital increase through public stock offering made in October 2018 and
Slide 26: Progress in the Medium-term Management Plan (Operating profit/Net profit)
Reference② Progress in the Medium-term Management Plan (Operating profit/Net profit*) Operating Profit Net profit* Residential Medium-term Management Plan 2017-2020 Real-Estate Agents Innovation business 120 ¥billion Tokyu Hands Wellness 95.0 Property Management 100 Urban Development 82.0 9.0 Elimin
Slide 27: Trends in equity and interest-bearing debt
Reference③ Trends in equity and interest-bearing debt Rating Institution: Japan Credit Rating Agency, Ltd. Long-term：A (Stable) Short-term：J-1 Medium-Term Management Plan 2017-2020 ¥billion Equity Interest-bearing Debt Debt Equity ratiio Debt/EBITDA ratio 1,400 14.0× 12.8 EBITDA 11.7 11.7 12.1 multi
Slide 28: Basic Policy for Increasing Shareholder Value (1)
Reference④ Basic Policy for Increasing Shareholder Value and Corporate Value (1) Aim to increase EPS and ROE in an effort to increase shareholder value by growing earning power while maintaining financial discipline. Business portfolio strategy Increase Increase Asset Utilization Type Business share
Slide 29: Basic Policy for Increasing Shareholder Value (2)
Reference⑤ Basic Policy for Increasing Shareholder Value and Corporate Value (2) Current status and basic policy on business portfolio strategy BS for FY2018 Ended Mar-2019 Breakdown of assets by segment Total assets Property Management Real Estate Agents ¥2,405.2 billion ¥102.5 billion ¥104.9 billi
Slide 30: Basic Policy for Increasing Shareholder Value (3)
Reference⑥ Basic Policy for Increasing Shareholder Value and Corporate Value (3) Basic policy regarding financial and capital policies BS for FY2018 D/E ratio and EBITDA multiple Ended Mar-2019 •For the time being, control the D/E ratio at 2.3 or below, aim for the 10 times-level of EBITDA Total ass
Slide 31: Return to Shareholders
Reference⑦ Return to Shareholders Annual dividend for the fiscal year ending March 31, 2020, will be raised to 16.0 yen, representing the 7th consecutive increase. 16.0 16Yen Dividend*（Year-end） 15.5 14.5 14Yen Dividend*（Interim） 13.0 12.0 12Yen 8.0 8.0 10.0 7.5 10Yen 6.5 8.0 6.5 8Yen 7.0 5.0 6Yen 4
Slide 32: Market value appraisal for leased properties
Reference⑧ Market value appraisal for leased properties ＊As of Mar-31, 2019 Unrealized profit of leased properties increased thanks to the active real estate market and the inclusion of large redevelopment projects. FY2017 FY2018 （\ billion） Comparison Remarks Mar-2018 Mar-2019 Carrying Value 791.4
Slide 33: ESG management
Reference⑨ ESG management ESG management to realize sustainable growth and the enhancement of corporate value Environment Corporate governance 〈FY2020 KPI〉 Selected as global ESG index 〈FY2020 KPI〉 Rate of attendance at the board of CO2 emissions：▲25% reduction directors' meeting ：100％ CASBEE/DBJ en
Slide 34: Transition in total floor area and AUM transition
Reference⑩ Transition in total floor area and AUM transition ＊As of Mar-31, 2019 〈Transition in total floor area〉 〈AUM transition〉 Thousand ㎡ ¥billion API* 1,251.9 2,000 CRR** Commercial facilities 1,200 Office building Private REITs, etc. 1,580 988.6 1,000 527.2 1,458 1,438 1,427 1,500 787.3 800 35
Slide 35: Distribution of Office Buildings
Reference⑪ Distribution of Office Buildings (Urban Development segment) For the portfolios, office buildings are concentrated in four wards in the Tokyo Metropolitan area (As of March-31, 2019) 〈Area〉 〈Completed year〉 Metropolitan 4districts After 2001 482thousand ㎡（83%） 49buildings 354thousand ㎡（61
Slide 36: The superiority of Shibuya
Reference⑫ The superiority of Shibuya The vacancy rate continued to remain low in the 5 wards of central Tokyo as an office area, and rents are steadily on the rise. 〈Falling vacancy rate〉 〈Increasing average rent〉 （2012 figures = 100） （%） Chiyoda-ku Chiyoda-ku 12.0 140.0 Chuo-ku Chuo-ku 135.8 Minat
Slide 37: Major office buildings
Reference⑬ Major office buildings(Urban Development segment) As of the end of March 2019, the Company holds 60 buildings, located mainly in four wards in central Tokyo. No. of Total floor Area Major properties[Building] Year built notes buildings space * Shibuya Center Place 1983 7 Shibuya Dogenzaka
Slide 38: Major commercial facilities
Reference⑭ Major commercial facilities(Urban Development segment） As of the end of March 2019, the Company operates 25 locations in the Tokyo area and 8 locations in Kansai and other regions. No. of Major properties Total floor Area Year built notes facilities [Commercial facilities] space * Tokyu P
Slide 39: Major facilities (Wellness business)
Reference⑮ Major facilities (Wellness business) ＊As of Mar-31, 2019 Manage diverse resort facilities throughout the country Number of Number of facilities rooms Name of facilities Teteshina Hakone Myojindai Urabandai Grandeco Kyoto Takagamine Katsuura Madarao Nasu VIALA annex Kyoto Hamanako Tateshin
Slide 40: Copyright © TOKYU FUDOSAN HOLDINGS CORPORATION All rights reserved.
39 Copyright © TOKYU FUDOSAN HOLDINGS CORPORATION All rights reserved.
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